Question: Robin Harrington established Time Definite Delivery on January 1 The

Robin Harrington established Time Definite Delivery on January 1. The following transactions occurred during the company’s most recent quarter.
a. Issued common stock for $ 80,000.
b. Provided delivery service to customers, receiving $ 72,000 in accounts receivable and $ 16,000 in cash.
c. Purchased equipment costing $ 82,000 and signed a long- term note for the full amount.
d. Incurred repair costs of $ 3,000 on account.
e. Collected $ 65,000 from customers on account.
f. Borrowed $ 90,000 by signing a long- term note.
g. Prepaid $ 74,400 cash to rent equipment next quarter.
h. Paid employees $ 38,000 for work done during the quarter.
i. Purchased (with cash) and used $ 49,000 in fuel for delivery equipment.
j. Paid $ 2,000 on accounts payable. k. Ordered, but haven’t yet received, $ 700 in supplies.
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E).

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  • CreatedNovember 02, 2015
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